The protocol requires developed countries to cut emissions of heat-trapping industrial gases which cause global warming. But it cannot enter force until it has been ratified by a certain percentage of polluting states.

Since the United States walked away from the deal in 2001, the arithmetic means that the Kyoto Protocol's future is in Russian hands. If Russia does not ratify it it, the treaty cannot come into force.

"We cannot wait until 2008 for Russia to make up its mind," Palacio told a news conference.

The signatories to the protocol have committed themselves to scaling back their emissions of six greenhouse gases to 1990 levels. They have to do so between 2008 and 2012.

"Uncertainty over this crucial question cannot be kept up until the last minute," Palacio added, explaining that decisions had to be made soon about where to relocate European industries as part of efforts to meet Kyoto's targets.

Palacio denied reports in Europe's leading business daily, the Financial Times, and in the Spanish financial newspaper Expansion that she intended to write off the EU's obligations under Kyoto to reduce greenhouse gas emissions if Russia did not ratify the treaty.

"To avoid all misunderstanding, I wish to say once again that the European Union is playing a fundamental part in the fight against climate change," she said.

"With or without Kyoto, the EU must retain the aim of reducing greenhouse gases by eight percent by 2012," she added, but it should at the same time "begin to look at the worst-case scenario" and work out ways of reaching the target without undermining the competitivity of EU industry.

"My impression is that Russia has no intention of ratifying, or that it will demand a price from the EU which we cannot pay," Palacio said.

TERRA.WIRE